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PROCUREMENT OPPORTUNITY

Interim Highways Services - Birmingham

Birmingham City Council · Contract details notice on Find a Tender

Tender information last checkedLast checked 21 Sept 2026, 18:44.

Opportunity overview

Kier Transportation Limited ("Kier") previously provided interim highways maintenance and associated operational services across the Birmingham highways network (the "Services") through an Interim Services Contract ("ISC") with Birmingham City Council's ("the Authority") subcontractor, Birmingham Highways Limited ("BHL"). The ISC novated from BHL to the Authority on 31 July 2026. The ISC was originally procured in accordance with the Public Contracts Regulations 2015. Following the Department for Transport's recent decision to withdraw its support for the continued funding of the Authority's highways PFI project, the Authority will procure an alternative long-term solution to replace this project. To enable the procurement of this alternative solution, the Authority requires the continued provision of the Services on an interim basis and therefore proposes to enter into a variation agreement to extend the ISC, such that it will expire on 31 July 2028 (or on 30 April 2029 if the Authority exercises an option to extend the ISC set out in the variation agreement). The variation agreement will therefore ensure the continued uninterrupted delivery of critical public services and the continued safety of the public in accordance with the Authority's statutory duties.

Awarded to

Amounts belong to published awards or contracts. Where several suppliers share one value, it is labelled as shared and is not a supplier-specific allocation.

KIER TRANSPORTATION LIMITED

Matched by number
Contract value
£120m
Awarded
Not supplied
Contract signed
30 Jul 2026
Including VAT
£144m
Award ID
1
Status
active
Identifier
GB-COH 05606089
Location
Salford, UKD34, M50 3XP, United Kingdom

Classification

No classification was supplied.

Lots

  • Lot 1Value not stated

Documents and notices

Published notice details

Additional information from the published procurement release. Fields appear only when supplied by the source; check the original notice and tender documents before acting.

Scope, procedure and submissions

Id
ocds-h6vhtk-06ce46
Status
complete
Procurement Method
direct
Procurement Method Details
Direct award
Why this procedure was chosen
The Authority has determined that the variation agreement constitutes a direct award under the Procurement Act 2023 (the "Act"). The Authority is relying on the following the direct award justifications set out in Schedule 5 of the Act for the purposes of the award of this variation agreement: 1. Continuity and integration of existing services The Services to be provided under the variation agreement are a continuation of the Services currently delivered by Kier under the ISC. The direct award is intended to ensure continuity of service in respect of the operation and maintenance of the Birmingham highway network, which is a critical public service. The Authority has determined that a change of supplier and immediate replacement of Kier as the incumber supplier would give rise to incompatibility, and such incompatibility would result in disproportionate technical difficulties in the operation and maintenance of the Service which would give rise to a material risk to service continuity. 2. Urgency and interim nature of the arrangement The need for the variation agreement to ensure the continuation of the Services currently delivered by Kier has arisen as a result of circumstances outside of the Authority's control, resulting from the Department of Transport's decision to withdraw its support for the continued funding for the Authority's highways PFI project. The Authority considers that the direct award was strictly necessary for reasons of extreme and unavoidable urgency to ensure continuity of a critical public service while it undertakes the steps required to develop and procure a longer-term solution and the continued safety of the public in accordance with the Authority's statutory duties. The Authority has determined that it would not be possible to run a competitive procurement process to procure a supplier which could ensure such continuity of service in the timeframes available. The variation agreement with Kier is therefore intended to operate as a temporary measure pending the completion of a procurement process for a replacement solution to the Authority's highways PFI project. The Authority will shortly provide further information concerning the procurement of the replacement solution and the opportunities this will present to the market.

Legal basis

Id
2023/54
Scheme
UKPGA

Procedure reasons

Entry 1
Id
additionalRepeatExtensionPartialReplacement
Entry 2
Id
urgency

Lots and requirements

Entry 1
Id
1
Status
complete

Published documents

Entry 1
Id
conflictOfInterest
Document Type
conflictOfInterest
Description
Not published

Buyer, suppliers and contacts

Organisation 1
Name
Birmingham City Council
Id
GB-PPON-PCJJ-4826-QMLZ

Identifier

Scheme
GB-PPON
Id
PCJJ-4826-QMLZ

Address

Street Address
Council House, 1 Victoria Square
Locality
Birmingham
Postal Code
B1 1BB
Country
GB
Country Name
United Kingdom
Region
UKG31

Contact

Name
Commercial and Procurement Services

Roles

buyer

Details

Classifications

Entry 1
Scheme
UK_CA_TYPE
Id
publicAuthoritySubCentralGovernment
Description
Public authority - sub-central government
Organisation 2
Name
KIER TRANSPORTATION LIMITED
Id
GB-COH-05606089

Identifier

Scheme
GB-COH
Id
05606089

Additional Identifiers

Entry 1
Scheme
GB-PPON
Id
PYYQ-3271-CYND

Address

Street Address
2nd Floor, Optimum House, Clippers Quay,
Locality
Salford
Postal Code
M50 3XP
Country
GB
Country Name
United Kingdom
Region
UKD34

Contact

Roles

supplier

Details

Scale
large
Vcse
No
Public Service Mission Organization
No
Sheltered Workshop
No

Award information

Award 1
Id
1
Status
active
Main Procurement Category
works

Items

Item 1
Id
1
Related Lot
1

Additional Classifications

Entry 1
Scheme
CPV
Id
45233139
Description
Highway maintenance work

Delivery locations

Entry 1
Region
UKG
Country
GB
Country Name
United Kingdom

Suppliers

Supplier 1
Id
GB-COH-05606089
Name
KIER TRANSPORTATION LIMITED

Related lots

1

Contracts and changes

Entry 1
Id
1
Award ID
1
Status
active
Has Renewal
Yes
Above Threshold
Yes
Date Signed
31 Jul 2026, 00:00

Period

Starts
1 Aug 2026, 00:00
Ends
31 Jul 2028, 23:59
Max Extent Date
30 Apr 2029, 23:59

Renewal

Description
Subject to satisfactory performance and funding availability.

Value

Including VAT
144,000,000
Amount
120,000,000
Currency
GBP

Documents

Entry 1
Id
A-22741
Document Type
contractSigned
Format
application/pdf
Entry 2
Id
A-22742
Document Type
contractSigned
Format
application/pdf
Entry 3
Id
089319-2026
Document Type
contractNotice
Notice Type
UK7
Description
Contract details notice on Find a Tender
Published
21 Sept 2026, 16:20
Format
text/html

Agreed Metrics

Entry 1
Id
1
Title
Cat 1 and urgent faults attend and make safe on time (%)
Description
The ISC, as novated from BHL to the Authority, incorporates existing key performance indicators, set out in Schedule 25 (Incentivisation Schedule) to Contract Schedule D (Scope provided by the Client) of the ISC, that were established as part of the original competitively procured contract and which remain in force between the Authority and Kier. The Authority considers that these existing KPIs are appropriate for the continued provision of the Services during the term of the variation agreement, having been developed through a competitive procurement process conducted in accordance with the Public Contracts Regulations 2015. Given the interim nature of the variation agreement, the Authority has determined that it would be disproportionate and potentially disruptive to service continuity to renegotiate performance measures when adequate KPIs, against which Kier's performance will continue to be measured, are already in place. In accordance with section 53(3) of the Procurement Act 2023, the Authority will publish the full ISC (including details of all applicable KPIs) within 90 days of the date of the variation agreement, subject only to the redaction of sensitive commercial information and personal data.

Observations

Entry 1
Id
frequency

Period

Duration In Months
12
Entry 2
Id
2
Title
Cat 1 and urgent faults full repair carried out on time (%)

Observations

Entry 1
Id
frequency

Period

Duration In Months
12
Entry 3
Id
3
Title
In-Light repairs carried out within time (%)

Observations

Entry 1
Id
frequency

Period

Duration In Months
12

Recorded locations

  • Buyer location · Birmingham · UKG31 · B1 1BB · United Kingdom

Notice and amendment history

4 published notice versions reviewed by ProcuraAxis.

4 VERSIONS
  1. 067986-2026Transparency notice on Find a Tender ·
  2. 068530-2026Contract award notice on Find a Tender ·
  3. 083252-2026Contract award notice on Find a Tender ·
  4. 089319-2026Contract details notice on Find a Tender ·